Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
Read more about Capital Adequacy Ratio: Formula, Use, Risk Weighting, Types of Capital
Famous quotes containing the words capital and/or ratio:
“Many of us do not believe in capital punishment, because thus society takes from a man what society cannot give.”
—Katharine Fullerton Gerould (1879–1944)
“A magazine or a newspaper is a shop. Each is an experiment and represents a new focus, a new ratio between commerce and intellect.”
—John Jay Chapman (1862–1933)